Information Videos Mitigate Hypothetical Bias in Discrete Choice Experiments

Abstract

Efforts to reduce hypothetical bias in stated preference methods often focus on the content of ex ante information. This article instead examines the impacts of presentation formats on hypothetical bias mitigation, focusing on cheap talk scripts and product explanations. Using beef alternatives characterized by attributes such as low-carbon label, plant-based label, favor, and price, we find that video presentations result in hypothetical willingness-to-pay values closer to nonhypothetical scenarios, particularly among new and unfamiliar attributes. Subjects exposed to video information demonstrate an improved understanding of hypothetical bias and product attributes, and those with lower cognitive skills may be more responsive to video displays.